The clothes retailer is the latest high street victim, leaving customers with
gift cards out of pocket.

Gift vouchers for the clothes brand Republic have been suspended following the firm's collapse into administration.

Accountant Ernst & Young was appointed administrator of the fashion retailer on Wednesday and has suspended gift vouchers, effectively rendering them worthless. A spokeswoman said instructions had also been issued to have the sale of gift cards stopped.

Republic's website was still selling gift cards on Wednesday afternoon, but this would soon be suspended, according to Ernst & Young.

A spokeswoman said: "It is necessary to suspend gift vouchers at this time as we assess the financial position of the company."

If customers have a gift voucher and the issuing company goes into administration, they are effectively left holding a useless piece of paper as the administrators are under no obligation to honour the vouchers.

Voucher holders' money is not protected if a company goes bust. Instead, they will be classed as creditors and must line up with everyone else owed money by the failed company.

A Which? spokeswoman said: "With the increasing number of high street retailers going bust, consumers need to be aware of their rights particularly regarding gift vouchers.

“If a store goes into administration it may refuse to accept gift vouchers, though this situation may change. If they do refuse and you need to make a claim, write to the administrators with proof of your vouchers. Unfortunately there is no guarantee that you will get the full value back, and a claim could take some time for the administrators to process.

“It is also worth remembering that if you’ve bought an item costing more than £100 on a credit card and the supplier goes bust, you can claim a refund by writing to the credit company with details of your claim.”

Citizens Advice ‏said customers with worthless vouchers could use "chargeback" to reclaim their money if they paid with a debit or credit card. More details are on the charity's website, or you can call their consumer advice helpline on 0845 4040 506.

Republic, which has its headquarters in Leeds, operates 121 stores across the UK and employs around 2,500 people.

The business began as a men's denim retailer in 1986 under the Best Jeans brand in Leeds. It currently offers casual fashion, under multiple brands to young adults, including Jack Jones and SoulCal.

Customers with enquiries should contact Ernst & Young on 0113 298 2450 or email republicinadmin@uk.ey.com.